
The global demand for styrene butadiene rubber (SBR) was 4,151 kilo tons in 2009 that increased to 4,324 kilo tons in 2010. SBR demand is expected to grow at a CAGR of 5.7% from 2012 to 2018. The growth in the SBR market is primarily driven by the increasing demand from the tire manufacturing industry, which is the largest consumer of SBR. Increased automobile sales in major countries of the world have played a key role in increasing the demand for tires. In addition, the tire labeling regulations in countries like Japan, Korea and the European Union have created huge demand for solution SBR (S-SBR). However, volatility in raw material prices, especially butadiene prices, has been a major inhibitor for the market.